Genworth 2018 Annual Cost of Care Survey: Overall Long Term Care Costs Increased in Connecticut

RICHMOND, Va., Nov. 8, 2018 /PRNewswire/ -- According to the 15th annual Genworth Cost of Care Survey, the overall cost of long term care in Connecticut increased from 2017 to 2018¹, making it one of the top three most expensive states in the nation for long term care in nursing facilities.

Overall, long term care costs across most care settings in Connecticut, including homemaker services , adult day care, assisted living and nursing facilities, increased from 2017 to 2018. The cost of a private room in a nursing home in Connecticut was among the most expensive in the nation at $164,798 per year.

Nationally, the blended annual median cost of long term care support services increased across the country an average of 3 percent from 2017 to 2018¹, with some care categories exceeding two to three times the 2.1 percent U.S. inflation rate². This is significant because, as people live longer, the likelihood of of needing long term care increases³, a proposition that is getting more costly with every passing year⁴.

"For the past 15 years, Genworth has been a leader in educating families about the potential of needing long term care by providing our annual Cost of Care Survey and underscoring the importance of planning ahead for these costs," said David O'Leary, President and CEO of Genworth's U.S. Life Insurance division.  "Most people assume government programs will pay for some or all of these costs⁵, but that's not always the case. That's why it's so important for people to educate themselves about the costs and how they will pay for them -- well before they need care -- so that they can live on their own terms as they grow older."     

Cost of Care Statistics for Connecticut

*Referred to as Residential Care Facilities in California.

Why Costs Are Rising

Several factors⁶ are driving up the cost of care across all care options, according to long term care providers surveyed by Genworth:

• The shortage of skilled workers. It's a simple case of supply and demand:  With demand outpacing the supply of workers, caregivers know they can demand more and companies are willing to pay more for the best workers.  Also, fewer caregivers mean more overtime, which means consumers pay more for care.   
• Higher minimum wages and changes in overtime pay rules.
• Difficulty attracting and retaining qualified workers.
• Business constraints facing home care agencies, such as differing laws on certification of caregivers, compliance obligations, razor-thin margins, balancing care quality and costs.
• The increasing incidence of Alzheimer's Disease and dementia, which is increasing the need for more specialized care – and higher hourly wages.
• Aging Americans needing more specialized care, the result of waiting too long to receive professional care. By then, the diagnosis has progressed beyond the need for basic care to very specialized and intensive levels of care, which is more expensive.

Resources for Understanding Care Financing Options
Genworth believes people of all ages should understand the opportunities and challenges associated with living longer in today's world. Planning well now helps expand the choices available for care later as we grow older.  People of all ages can take advantage of the following resources to educate themselves about the cost of care and alternative funding options:   

• Visit https://www.genworth.com/aging-and-you/finances/cost-of-care.html to learn more about the total cost of long term care in your area and how costs have changed over time.
• Download Genworth's Cost of Care App from iTunes or Google Play Store.
• To explore long term care financing options, please visit genworth.com/longtermcare
• Beyond traditional insurance products, an underwritten single premium immediate need annuity can be purchased by older, less healthy Americans or their families to provide a guaranteed lifetime source of income that can be used for any purpose including, to pay for care or other expenses.  Learn more here: www.genworth.com/products/immediate-need-annuity.html. 

"Increasingly, people and their loved ones are finding that the cost of long term care services is staggering and often they are unaware of it in advance," said Gordon Saunders, Senior Brand Marketing Manager at Genworth, who manages the Cost of Care Survey.  "Our mission is to help people who need care age on their own terms and live their lives the way they want.  We do that by providing research and resources that can help educate people about the cost associated with long term care well before they need it.  We hope these resources will encourage them to start meaningful conversations with family and friends about their care because to live well, we all must plan well."

About Genworth's 2018 Cost of Care Survey
Genworth's annual Cost of Care Survey, one of the most comprehensive studies of its kind, contacted more than 49,000 long term care providers nationwide to complete 15,500 surveys for nursing homes, assisted living facilities, adult day health facilities and home care providers. The survey includes 440 regions based on the Metropolitan Statistical Areas, defined by the Office of Management and Budget, and include approximately 85 percent of the U.S. population. Genworth annually surveys the cost of long term care across the U.S. to help Americans plan for the potential cost associated with the various types of long term care available in their preferred location and setting. The survey also provides state-specific cost of care data for all 50 states and Washington, D.C., and comparison to the national median. Genworth's 2018 Cost of Care findings also highlight the 15 year tends in care costs as measured in the Cost of Care data over the last 15 years. CareScout®, part of the Genworth Financial family of companies, has conducted the survey since 2004. Located in Waltham, Massachusetts, CareScout has specialized in helping families find long term care providers nationwide since 1997.

About Genworth Financial 
Genworth Financial, Inc.is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.

From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com. From time to time, Genworth's publicly traded subsidiaries, Genworth MI Canada Inc. and Genworth Mortgage Insurance Australia Limited, separately release financial and other information about their operations. This information can be found at http://genworth.ca and http://www.genworth.com.au

¹ Genworth's Cost of Care Survey, conducted by CareScout®, 2017-2018.
² United States Department of Labor, Bureau of Labor Statistics, accessed 10/03/18.
³ Recent research suggests that most Americans turning age 65 will need long-term care services at some point in their lives. Source:   2018 U.S. Department of Health and Human Services (www.longtermcare.acl.gov). November 14, 2017
⁴ Genworth's Cost of Care Surveys, conducted by CareScout®, 2004-2018.
⁵ Genworth's Long Term Care Sentiment Study, September 2017. 
⁶ Online discussions with long term care providers across all care settings in key geographical locations, conducted for the 15^th anniversary of Genworth's Cost of Care Survey by J&K Solutions, LLC, September 2018.

SOURCE Genworth Financial, Inc.

Related Links

http://www.genworth.com

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